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Gao 'murder': CCTV, then body in sea

Police investigating the disappearance of Jamie Gao say CCTV shows part of a botched ice deal and confirm an object, believed to be a body, was found off Cronulla on Monday. CRIMESTOPPERS: 1800 333 000.

He said the body was wrapped in a bright blue-coloured tarpaulin held together by white rope. He saw two feet with "white leather runners" on.

Sources close to the investigation have told Fairfax Media the body "fits" with the events they allege happened about the time of Mr Gao's disappearance.

The University of Technology student was reported missing on Wednesday, 24 hours after he was joined by two others in meeting Mr McNamara and Mr Rogerson in the Padstow industrial area, police will allege.

Missing student Jamie Gao. Photo: Police Media

It is understood that the meeting was an arranged large-scale drug deal in which Mr Gao was to supply the three kilograms of ice.

After the men met on Arab Street, police will allege they all went to a nearby storage unit where Mr Gao was murdered.

The head of the Robbery and Serious Crime Squad, Detective Superintendent Luke Moore, said detectives were still trying to determine what transpired during that alleged drug deal.

He said that Mr Gao had gone to the meeting voluntarily and was reported missing the next day.

Mr Gao's own car, a white Nissan Silvia sedan, was found abandoned near where he was last seen. His phone, keys and wallet were nearby.

Mr Gao is an only child from Hurstville; his mother was in Hong Kong when he went missing.

Hours later, Mr McNamara was pulled over during a traffic stop at Kyeemagh in Sydney's south and he was questioned overnight before being charged with murder and drug offences.

Mr Rogerson, 73, was a decorated senior police officer until he shot and killed drug dealer Warren Lanfranchi in 1981.

He was twice convicted for lying in court and served two separate jail terms.

He was later accused of supplying drugs, assault, bribery and conspiring to murder, but was never convicted.

Mr McNamara is a former investigator with the National Crime Authority and the NSW police; he was a detective stationed in Kings Cross and in Sydney's south. He gave evidence to the NSW police royal commission about alleged police protection of paedophiles.

Mr McNamara's Cronulla home has been searched by police and a blue Ford Falcon XR6 was seized from his premises.

Mr Rogerson's Padstow Heights home was also searched and a car, a silver Ford Falcon, was taken away.

Police also searched a storage unit at Caringbah where a boat was taken away for forensic testing.

A third car, a silver Ford Falcon, was found at another location in Cronulla. It is this car detectives believe Mr Gao got into on Arab Road last Tuesday.

Superintendent Moore said the investigations would continue.

“Our inquiries to date have led us to conclude that Mr Gao has been murdered,” Superintendent Moore said.

“While we have charged a man with murder, this investigation will continue and we may make further arrests.